Santander Headquarters
Getty Images
Santander After stable revenue and profit management in Europe and Brazil, second-quarter net profit rose 20% annually, supported by growth in retail, wealth and consumer activity.
The company’s net profit attributable to the parent company was 3.207 billion euros ($3.48 million), in line with the consensus of analysts polled by Reuters.
The bank’s ratios have also firmed, with its fully loaded CET1 ratio – a measure of a bank’s solvency – rising to 12.5% ​​in the three months to June from 12.3% in the March quarter.
Its return on tangible equity, a profit measure, rose to 16.8% in the June quarter from 14.9% in the first quarter and to 15.9% in the first half, up from 14.5% a year earlier. Full-year RoTE guidance was raised to over 16% from the previous forecast of 16%.
Santander now expects high-single-digit revenue growth, up from its previous forecast of mid-single-digit growth.
Other highlights include:
- Profit before tax: 4.925 billion euros in the second quarter, compared with 4.258 billion euros in the same period last year.
- Net interest income: €11.47 billion in the June quarter, compared with €10.52 billion in the same three months last year, but below the 11.96% forecast for the second quarter of 2024 by analysts polled by Reuters.
In discussing revenue, the bank pointed to the “negative impact of hyperinflationary adjustments” in Argentina, where President Javier Milley has made curbing price increases a top priority.
“Against the backdrop of a volatile geopolitical environment, we are confident of achieving the more ambitious targets we have set out today, thanks to our diversity across businesses and markets, the strength of our model and the quality of our team – of whom I am very grateful Express thankfulness.
This breaking news story is being updated.
